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i retired 3 years ago, modest pension, good medical coverage that costs a mere $150 a month and very healthy i spend almost nothing on medical, not old enough for ss, always lbym so saving money was not hard at all. 20 year old car, no vacations by choice, grow a lot of my food, heat with wood so i spend $450 per year on heat (!), i really do lbym. in the 1st 2 years of retirement i was living on a gross amount of $34k with a mortgage, my wr both years was less than 1.5% to supplement my pension.

starting at the end of 2009 i decided to pay off the mortgage and by june of this year i paid it off in year 7 of a 30 year note so i spent a LOT of money in 2009 and 2010 on the mortgage - way beyond normal in the way of expenses for those 2 years due to that.

2011 will be the 1st full year without a mortgage and i expect i'll need only about $20k a year and may well have a 0% withdrawal rate on portfolio unless an unexpected expense like a new roof or replace my car occurs.

I/we keep it simple. we work hard, live simply and extreme-save. Then we invest. After a while, it builds up more than I ever dreamed. A small pension, + SS and we can get by nicely. As I said, we are in the accumulation stage, so this is what we mostly live off of. Add in 1% SWR and extravagance! My role models were depression era people.
I really learned after losing our home to a flood. In one day, almost all possessions were ruined. We had some money, but it was locked away in 401Ks and thanks to certain jerk Republicans, couldn't use it without losing everything. We rolled up our sleeves, cleaned up what we could, tore out and rebuilt as money came in. I don't hire unless I can't do it myself nor easily learn how. I taught myself plumbing, electrical, mechanical, took exams and got licensed do do my own work. I refused to go into debt unless the rate was so low that I could earn more than I paid out.
The gift was learning self reliance and a craftsmanship and detail for a home that I could never afford. I also learned how great a partner I had married.
I also learned that you don't need money to have fun, and that a few simple and small indulgences can go a long way to feeling like I have an extravagant life. For example, tonight is pizza night. I've learned to make a better pizza than anyone in our city, save one. (When I retire, I'm getting a job there and learning their secret.)

We left the bright city lights behind. Ms G. and I moved to the bajada of a mountain range in SE AZ half a mile from a 88K acre wilderness area. One of my hobbies before ER is birdwatching. Where I moved to birdwatching is almost considered a j*b. The weather is perfect for mtn biking year round hiking, horseback riding. I can spend hours walking my property for indian artifacts, box turtles, rattlesnakes, and backpacks of dope. Just me mind you, but I hate going into the big city of 14K people to shop every other week 50 miles away. We live on 40K a year with medical and groceries(we eat a lot of organic foods) taking half of that. Even with acreage property taxes are cheap, gas 3 trucks 3K a year. We have 4 other couples over for wine and dining twice a month. I bought a new $45K truck last year. I count interest in my spending, but principal is a depreciating asset. Also not included is the 50K spent on the homestead that came out of the nice profit I made on my Phoenix home. No cable, no cell phone(no service), but have XM because there is no radio reception.

At this point I have 3 years before SS kicks in maybe we will get a little wild after that.

By the way my projected income is $65-95K. so even in retirement I am banking cash.

We left the bright city lights behind. Ms G. and I moved to the bajada of a mountain range in SE AZ half a mile from a 88K acre wilderness area.... No cable, no cell phone(no service), but have XM because there is no radio reception.

Hi there fellow Arizonan. Five years ago, we bought a 2nd home on the Mogollon Rim at 7000ft, with the intention of living there full-time eventually. It is near the National Forest, still nowhere as isolated as your abode. But after living there on and off on a part-time basis, I found that we missed the amenities of the city life.

It has been years since we set foot in a shopping mall or a movie theater. However, I like to go to a "real" library, to get groceries at Trader Joe's, etc... And I am not sure that we would save money living in the boonies, because even when we are in the metropolitan area, our lifestyle is the same. Electric bills would be a bit less than in the hot low desert, but taxes are about the same. Living in the boonies means more gasoline costs just to get groceries as we are 30mi from the nearest town. So, for now, we keep both houses until we figure out what will work. Besides, we still have a son attending the local U, and he lives at home.

__________________"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky

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